Only around Rs 4,000 crore of the dues is recoverable; BMC terms the remaining amount as locked-up balance
About Rs 16,000 crore of the pending property tax dues is stuck in various disputes. Representation pic
The Brihanmumbai Municipal Corporation (BMC) has a challenging job ahead of it – collecting the pending property tax dues of Rs 19,874 crore for the fiscal 2020-21. This is almost equal to the civic body’s estimated total income for the year. Of the total pending amount, Rs 16,000 crore is stuck in various disputes, and the corporation has termed it as locked-up balance. Only around Rs 4,000 crore of the dues is recoverable.
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The BMC had estimated a total property tax collection of Rs 6,768 crore in the 2020-21 budget. But now, the revised estimated income for fiscal 2020-21 is Rs 22,572 crore, out of which Rs 4,500 crore is to be derived from property tax. Till now, the BMC has collected R3,486 crore and it may draw the rest of the amount from commercial properties by March-end. But the real issue is with the pending tax of Rs 19,874 crore as on January 15, 2021. Out of it, Rs 15,878 crore is stuck in various litigations or are irrecoverable amounts, while R3,995 crore is recoverable.
Out of the Rs 19,874 crore, more than Rs 1,500 crore is pending with various government agencies and Rs 3,000 crore is stuck in complaints against capital value-based tax. Another Rs 1,300 crore is under petitions and Rs 1,500 crore under wrong outstanding in system.
“We recovered around Rs 2,000 crore of the pending tax and now auction of movable and immovable properties will start. We have even started levying a 2 per cent penalty on the pending amounts per month, which will help recover the dues,” said Sangita Hasnale, assistant commissioner of the Tax Assessment and Collection Department.
Major tax dues
. Complaints against capital value: Rs 3,267 crore
. Court cases: Rs 312 crore
. Writ petitions, appeals: Rs 1,302 crore
. Demolished properties: Rs 277 crore
. From BEST: Rs 239 crore
. From central government: Rs 336 crore
. Foreign consulate properties: Rs 20 crore
. From MHADA: Rs 296 crore
. From state govt: Rs 135 crore
. MMRDA properties: Rs 340 crore
. Unauthorised structures on government and private land: Rs 340 crore
. Wrong outstanding in system: Rs 1,508 crore
Locked up balance: Rs 15,879 crore
Amount involved in processes (recoverable): Rs 3,995 crore
Total: Rs 19,874 crore
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